{"format":1,"id":"118-hr-4763","congress":118,"number":"H.R. 4763","kind":"bill","group":"bills","title":"Financial Innovation and Technology for the 21st Century Act","title_source":"Short Title(s) as Passed House","official_title":"To provide for a system of regulation of digital assets by the Commodity Futures Trading Commission and the Securities and Exchange Commission, and for other purposes.","titles":[{"type":"Official Title as Introduced","title":"To provide for a system of regulation of digital assets by the Commodity Futures Trading Commission and the Securities and Exchange Commission, and for other purposes."},{"type":"Short Titles from RFS (Referred to Senate) bill text","title":"Financial Innovation and Technology for the 21st Century Act"},{"type":"Display Title","title":"Financial Innovation and Technology for the 21st Century Act"},{"type":"Short Title(s) as Introduced","title":"Financial Innovation and Technology for the 21st Century Act"},{"type":"Short Title(s) as Reported to House","title":"Financial Innovation and Technology for the 21st Century Act"},{"type":"Short Title(s) as Passed House","title":"Financial Innovation and Technology for the 21st Century Act"}],"outcome":"passed_house","law_number":null,"introduced":"2023-07-20","chambers":{"house":{"status":"roll_call","date":"2024-05-22","vote":{"id":"118-2024-h226","question":"On Passage","title":"Financial Innovation and Technology for the 21st Century Act","result":"Passed","yea":279,"nay":136,"present":0,"not_voting":15,"source":"https://clerk.house.gov/evs/2024/roll226.xml"}},"senate":{"status":"na","date":null,"vote":null}},"president":{"status":"na","date":null},"vice_president_tie_breaker":null,"latest_action":{"text":"Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.","date":"2024-09-09"},"nominees":null,"amendments":[{"number":"H.Amdt. 919","sponsor":"Rep. Casar, Greg [D-TX-35]","purpose":"Amendment sought to change the new crowdfunding exemption from $75 million to $5 million.","result":"Failed","date":"2024-05-22","yea":204,"nay":209,"present":0,"not_voting":23,"source":"https://clerk.house.gov/evs/2024/roll223.xml"},{"number":"H.Amdt. 921","sponsor":"Rep. Norman, Ralph [R-SC-5]","purpose":"Amendment requires a study on the impact of digital asset registrants owned by foreign adversaries.","result":"Agreed to","date":"2024-05-22","yea":411,"nay":0,"present":0,"not_voting":25,"source":"https://clerk.house.gov/evs/2024/roll224.xml"},{"number":"H.Amdt. 922","sponsor":"Rep. Perry, Scott [R-PA-10]","purpose":"An amendment numbered 4 printed in Part B of House Report 118-516 to add a sense of Congress to the end of title V that nothing in this Act or any amendment made by this Act should be interpreted to authorize any entity to regulate any commodity, other than a digital commodity, on any spot market.","result":"Agreed to","date":"2024-05-22","yea":225,"nay":191,"present":0,"not_voting":20,"source":"https://clerk.house.gov/evs/2024/roll225.xml"}],"other_votes":[{"chamber":"house","date":"2024-05-22","question":"On Agreeing to the Amendment","title":"","result":"Failed","yea":204,"nay":209,"present":0,"not_voting":23,"kind":"amendment","source":"https://clerk.house.gov/evs/2024/roll223.xml"},{"chamber":"house","date":"2024-05-22","question":"On Agreeing to the Amendment","title":"","result":"Agreed to","yea":411,"nay":0,"present":0,"not_voting":25,"kind":"amendment","source":"https://clerk.house.gov/evs/2024/roll224.xml"},{"chamber":"house","date":"2024-05-22","question":"On Agreeing to the Amendment","title":"","result":"Agreed to","yea":225,"nay":191,"present":0,"not_voting":20,"kind":"amendment","source":"https://clerk.house.gov/evs/2024/roll225.xml"}],"crs_summary":{"date":"2024-05-06","stage":"Reported to House","blocks":[{"k":"h","t":"Financial Innovation and Technology for the 21st Century Act"},{"k":"p","t":"This bill establishes a regulatory framework for digital assets."},{"k":"p","t":"The Commodity Futures Trading Commission (CFTC) must regulate a digital asset as a commodity if the blockchain, or digital ledger, on which it runs is functional and decentralized. The bill classifies a blockchain as decentralized if, among other requirements, no person has unilateral authority to control the blockchain or its usage, and no issuer or affiliated person has control of 20% or more of the digital asset or the voting power of the digital asset. In addition, the bill provides the CFTC with exclusive regulatory authority over cash or spot markets for digital commodities."},{"k":"p","t":"The Securities and Exchange Commission (SEC) must regulate a digital asset as a security if its associated blockchain is functional but not decentralized. However, the bill establishes certain exceptions to SEC regulation for digital assets that limit annual sales, restrict nonaccredited investor access, and satisfy disclosure and compliance requirements. The bill also sets forth requirements for primary and secondary market transactions."},{"k":"p","t":"The CFTC and SEC must jointly issue rules to define terms and exempt dually registered exchanges from duplicative rules."}],"words":192},"summary":{"main_subject":{"text":"Sets up a system of regulation for digital assets, dividing oversight between the Commodity Futures Trading Commission and the Securities and Exchange Commission through definitions, offering and sale rules, and registration of exchanges, brokers, dealers and custodians.","cites":[{"label":"Sec. 101","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H50218C708E8E4E50B14D51349A26AC8D"},{"label":"Sec. 301","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H0C9C7EF1492E4A1BAE6C86A4F126A007"},{"label":"Sec. 404","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H500308E3F1E446BEB305285022128F75"},{"label":"Sec. 504","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H54FB2C51BB9849DE8A66A61868EDF0B9"}]},"core_areas":["Definitions of digital assets, digital commodities and decentralized blockchain systems","Exemption and disclosure rules for offers and sales of digital assets","Certification that a blockchain system is a decentralized system","SEC registration of digital asset trading systems, brokers, dealers and custodians","CFTC registration of digital commodity exchanges, brokers and dealers","Notice of intent to register for digital asset intermediaries","Studies, advisory committee and technology offices on digital assets"],"what_it_does":[{"text":"Defines terms such as \"digital asset,\" \"blockchain system,\" \"decentralized system,\" \"digital asset issuer,\" \"end user distribution\" and \"restricted digital asset\" by adding them to the Securities Act of 1933.","cite":{"label":"Sec. 101","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H50218C708E8E4E50B14D51349A26AC8D"}},{"text":"Defines \"digital commodity\" and adds definitions for digital commodity brokers, dealers, exchanges and custodians to the Commodity Exchange Act.","cite":{"label":"Sec. 103","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HAF27B446B729409193841F78585876DD"}},{"text":"Requires the CFTC and the SEC to issue joint rules further defining the digital asset terms, exempting dually registered persons from duplicative rules, and setting rules for mixed digital asset transactions.","cite":{"label":"Sec. 105","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HC00F5F9A7E784C848AF713A7A5134458"}},{"text":"Allows persons to file a notice of intent to register with the CFTC as a digital commodity exchange, broker or dealer, and exempts compliant filers from SEC registration as an exchange, broker, dealer or clearing agency for digital asset activities.","cite":{"label":"Sec. 106","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HAD23F2411F12478DA3D043E56E2140A4"}},{"text":"Exempts from registration under the Securities Act of 1933 certain offers and sales of digital assets by an issuer, with a cap of $75,000,000 in sales over 12 months, purchase limits for non-accredited investors, and filing of a statement with the SEC.","cite":{"label":"Sec. 301","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H0C9C7EF1492E4A1BAE6C86A4F126A007"}},{"text":"Allows any person to certify to the SEC that a blockchain system is a decentralized system; the certification takes effect after 60 days unless the SEC rebuts or stays it, and a rebuttal may be appealed to the D.C. Circuit Court of Appeals.","cite":{"label":"Sec. 304","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H62688B2EB98D4C719303AD8F160773EC"}},{"text":"Requires digital asset trading systems to register with the SEC and to hold customer restricted digital assets with a qualified digital asset custodian.","cite":{"label":"Sec. 403","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HFCC4C576C086486783CD6BD2843EB952"}},{"text":"Requires digital asset brokers and dealers to register with the SEC, join a national securities association, and follow rules on anti-fraud, customer asset custody, capital, and recordkeeping.","cite":{"label":"Sec. 405","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HD08A39AD2AB34D91939E7C2BF09F751B"}},{"text":"Requires trading facilities that offer a cash or spot market in a digital commodity to register with the CFTC as digital commodity exchanges, and sets core principles including listing standards, customer asset protection and conflict-of-interest procedures.","cite":{"label":"Sec. 504","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H54FB2C51BB9849DE8A66A61868EDF0B9"}},{"text":"Requires the CFTC and the SEC to jointly carry out a study on decentralized finance, and requires the Comptroller General to carry out a separate study, each reporting within 1 year of enactment.","cite":{"label":"Sec. 605","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H214A40B3D4C146C5A58BA73B3431D351"}}],"unexpected":[{"category":"off_subject","items":[{"cite":{"label":"Sec. 109","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H3374091AF239467CB1150FAA5E29A4BF"},"heading":"Administrative requirements","effect":"Adds a duty of trust and confidence for Members of Congress, congressional employees and federal employees or agents regarding material nonpublic information on restricted digital assets, for insider trading purposes, and extends Commodity Exchange Act section 4c(a) provisions to contracts of sale of a digital commodity.","amount":null,"quote":"each individual who is a Member of Congress, an employee of Congress, or an employee or agent of any department or agency of the Federal Government owes a duty arising from a relationship of trust and confidence"},{"cite":{"label":"Sec. 413","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HF3C7CBF160594336AF2E958DD2164C14"},"heading":"Discretionary Surplus Fund","effect":"Reduces the dollar amount specified in section 7(a)(3)(A) of the Federal Reserve Act by $15,000,000, effective September 30, 2034.","amount":"$15,000,000","quote":"The dollar amount specified under section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is reduced by $15,000,000."},{"cite":{"label":"Sec. 411","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H54E98FD5ED4D413889B5494519903AC0"},"heading":"Treatment of custody activities by banking institutions","effect":"Bars federal banking agencies, the NCUA, and the SEC from requiring certain depository institutions and trust companies to record custodied assets as liabilities or hold added capital against them, except for operational risk.","amount":null,"quote":"may not require, or take supervisory action that would cause, a depository institution, national bank, Federal credit union, State credit union, or trust company"}]},{"category":"selective_carve_out","items":[{"cite":{"label":"Sec. 404","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H500308E3F1E446BEB305285022128F75"},"heading":"Requirements for digital asset trading systems","effect":"Deems certain State-supervised trust companies adequately supervised before the Commission's custodian rulemaking takes effect, and requires a transition period of at least two years for those trust companies.","amount":null,"quote":"the Commission shall provide a transition period of not less than two years for any trust company which is deemed subject to adequate supervision and appropriate regulation"},{"cite":{"label":"Sec. 409","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H1CFBDBCE46034853A87F34879E09F01E"},"heading":"Exclusion for decentralized finance activities","effect":"Provides that a person is not subject to the Securities Exchange Act of 1934 or its regulations based on engaging in listed blockchain and decentralized finance activities, while keeping the SEC's anti-fraud and anti-manipulation authority.","amount":null,"quote":"a person shall not be subject to this Act and the regulations thereunder based on the person directly or indirectly engaging in any of the following activities"},{"cite":{"label":"Sec. 509","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HF018FECF35A340F29EC8B5BDC32D09E4"},"heading":"Exclusion for decentralized finance activities","effect":"Provides that a person is not subject to the Commodity Exchange Act or its regulations based on engaging in listed blockchain and decentralized finance activities, while keeping the CFTC's anti-fraud, anti-manipulation, and false reporting enforcement authority.","amount":null,"quote":"a person shall not be subject to this Act and the regulations promulgated under this Act based on the person directly or indirectly engaging in any of the following activities"},{"cite":{"label":"Sec. 510","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HB7B6A5CC2AFE417BA58A0651EB38350C"},"heading":"Funding for implementation and enforcement","effect":"Sets up CFTC filing fees for notices of intent to register, and lets the Commission reduce or eliminate the fee for small or medium filers. The authority to collect fees ends after the 4th fiscal year that begins after enactment.","amount":null,"quote":"the Commission, in its sole discretion, may reduce or eliminate any fee otherwise required to be paid by a small or medium filer under this subsection"},{"cite":{"label":"Sec. 410","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HA154F90C49E1412D8D928EC732DA1D5A"},"heading":"Registration and requirements for notice-registered digital asset clearing agencies","effect":"Lets a person registered as a notice-registered digital asset clearing agency within the first 2 years keep that registration in effect until the end of that period, even after the SEC adopts rules under this section.","amount":null,"quote":"registered as a notice-registered digital asset clearing agency before the end of the 2-year period beginning on the date of the enactment of this section shall have such registration remain in effect"},{"cite":{"label":"Sec. 505","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HB87F6E05D7A4432A8B09212E2860E15E"},"heading":"Qualified digital commodity custodians","effect":"Deems certain State-supervised trust companies to meet the custodian supervision standard before CFTC rules take effect, and requires a transition period of at least 2 years for them once the rules take effect.","amount":null,"quote":"the Commission shall provide a transition period of not less than 2 years for any trust company that is deemed subject to adequate supervision and appropriate regulation"},{"cite":{"label":"Sec. 106","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HAD23F2411F12478DA3D043E56E2140A4"},"heading":"Notice of intent to register for digital commodity exchanges, brokers, and dealers","effect":"A person who has filed a notice of intent to register with the CFTC and is in compliance is exempt from SEC rules on registering as a national securities exchange, broker, dealer, or clearing agency for activities related to a digital asset.","amount":null,"quote":"shall be exempt from Securities and Exchange Commission rules and regulations pertaining to registering as a national securities exchange, broker, dealer, or clearing agency, for activities related to a digital asset"},{"cite":{"label":"Sec. 107","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HD0D22D39BB13423C9DE740475DD5BEF8"},"heading":"Notice of intent to register for digital asset brokers, dealers, and trading systems","effect":"A person who has filed a notice of intent to register with the SEC and is in compliance is exempt from SEC rules on registering as a national securities exchange, broker, dealer, or clearing agency for activities related to a digital asset.","amount":null,"quote":"shall be exempt from Commission rules and regulations pertaining to registering as a national securities exchange, broker, dealer, or clearing agency, for activities related to a digital asset"},{"cite":{"label":"Sec. 403","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HFCC4C576C086486783CD6BD2843EB952"},"heading":"Registration of digital asset trading systems","effect":"A digital asset trading system that offers at least one restricted digital asset does not have to register with the SEC if it satisfies an exemption on a list the SEC prepares, modeled on existing exemptions from the definition of an exchange.","amount":null,"quote":"shall not be required to register under this section (and paragraph (1) shall not apply to such digital asset trading system) if the trading system satisfies any exemption contained on a list of exemptions"},{"cite":{"label":"Sec. 408","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-H99AE18D33E6B4452B8484C0EA256F0F8"},"heading":"Treatment of certain digital assets in connection with federally regulated intermediaries","effect":"Treats a restricted digital asset as a covered security under Securities Act section 18(b) for exempt transactions when it is handled by a registered digital asset broker or dealer or traded through a digital asset trading system, which gives it the exemption from State regulation that section 18(b) provides.","amount":null,"quote":"A restricted digital asset is treated as a covered security with respect to a transaction that is exempt from registration under this Act"},{"cite":{"label":"Sec. 501","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh#toc-HCFFC7014779444D9BE21E096FBBEB422"},"heading":"Commission jurisdiction over digital commodity transactions","effect":"Sets CFTC jurisdiction over digital commodity transactions but excludes custodial or depository activities of entities regulated by a Federal banking agency or State bank supervisor, mixed digital asset transactions, and permitted payment stablecoins from certain CFTC authority.","amount":null,"quote":"Clause (i) shall not apply with respect to custodial or depository activities for a digital commodity, or custodial or depository activities for any promise or right to a future digital commodity"}]}],"version":{"type":"Engrossed in House","date":"2024-05-22","rule":"passed","href":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text/eh"},"current":true,"model":"claude-sonnet-5-5","approved":"2026-10-01","approved_by":"checks"},"sources":{"congress_gov":"https://www.congress.gov/bill/118th-congress/house-bill/4763","text":"https://www.congress.gov/bill/118th-congress/house-bill/4763/text"},"card":{"image":"card/item/118-hr-4763.png","v":"51ba99b028e2","alt":"Votes on Record. H.R. 4763, 118th Congress: Financial Innovation and Technology for the 21st Century Act. House: 279 Yea, 136 Nay. Outcome: Passed House, 22 May 2024."}}